Return on Investment
Shown Below Are Selected Data from a Recent

question 146

Essay

Return on investment
Shown below are selected data from a recent annual report of Quality Service. (Dollar amounts are in millions.)
Compute for the year:
$$\begin{array} { | l | r | r | } \hline & \begin{array} { c } \text { Beginning } \\\text { of the Year }\end{array} & { \begin{array} { c } \text { End of } \\\text { the Year }\end{array} } \\\hline \text { Total assets } & \$ 6,000 & \$ 6,600 \\\hline \text { Total stockholders' equity } & \$ 3,200 & \$ 3,700 \\\hline \text { Operating income } & & \$ 2,000 \\\hline \text { Net income } & & \$ 1,900 \\\hline\end{array}$$ (a) Return on average total assets
(b) Return on average total equity

---

Definitions:

Adversity

A state of hardship or affliction; challenges or difficulties one encounters.

Resiliency

The capacity to recover quickly from difficulties or adapt to change.

Serious Trouble

Situations that pose significant danger or difficulty, requiring urgent attention and resolution.

Natural Power

Refers to the inherent abilities or forces within nature that can be harnessed for various uses, such as wind, solar, and hydro power.